Airbus Agrees to Pay $10Mln Fine for Violating US Arms Export Control Act - Statement

WASHINGTON (Sputnik) - Aircraft manufacturer Airbus has agreed to pay a $10 million fine for allegedly violating the US Arms Export Control Act by providing false information about its compliance with existing rules on arms sales overseas, the US Department of State said in a statement on Friday.

"The Department of State reached an administrative agreement with Airbus SE to resolve the alleged civil violations of the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR)," the statement said. "Under the terms of the 36-month Consent Agreement, Airbus SE will pay a civil penalty of $10 million."

The State Department, however, said it agreed to suspend $5 million of the penalty on the condition that the funds have or will be used for Department-approved consent agreement remedial compliance measures.

The State Department said it applied the penalty after Airbus admitted in October 2017 that it may have violated US rules on arms exports.

Airbus provided false statements on authorisation requests; failed to provide accurate and complete reporting on political given contributions, commissions, fees or offers in connection with sales, the State Department explained.

In addition, Airbus failed to maintain records involving ITAR-controlled transactions and engaged in unauthorised re-export and re-transfer of defence articles, the State Department added.

The settlement was reached after an extensive compliance review of Airbus’ role in the matter by the Office of Defense Trade Controls Compliance in its Bureau of Political-Military Affairs, according to the State Department.